Trading at more than five-fold from 52-week lows, Moderna’s (NASDAQ:MRNA) breakout shows no sign of slowing down. The spread of the delta COVID-19 variant around the world will drive recurring vaccine sales for at least the next year. BioNTech (NASDAQ:BNTX) also benefits from growing vaccine demand.
Investors previously thought that a two-dose regimen for the vaccine would happen annually. Israel’s infection figures for the vaccinated, after the first dose, suggesting that countries must do more to citizens fully vaccinated. Furthermore, after around four months, the immunity may start to wane.
Moderna and BioNTech will need to weigh in on the merits of a booster shot. An annual vaccination seems very likely while a booster shot every six-12 months is a possibility.
In the latter case, Moderna’s recurring revenue will likely rise. In the near term, many countries still have low first vaccination rates. China and much of Asia fit in that category. If China orders Moderna vaccine doses, then the stock could continue to rise from here.
After the S&P 500 justifiably added Moderna to the index, replacing Alexion (NASDAQ:ALXN), fund investors will own a small weighting in this all-star stock.
